Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 408
                                Barcode 138968                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/05/2011           .                                

       The Committee on Rules (Smith) recommended the following:
    1         Senate Amendment (with directory and title amendments)
    3         Between lines 2192 and 2193
    4  insert:
    5         (n)1. Rates for coverage provided by the corporation must
    6  shall be actuarially sound and subject to the requirements of s.
    7  627.062, except as otherwise provided in this paragraph. The
    8  corporation shall file its recommended rates with the office at
    9  least annually. The corporation shall provide any additional
   10  information regarding the rates which the office requires. The
   11  office shall consider the recommendations of the board and issue
   12  a final order establishing the rates for the corporation within
   13  45 days after the recommended rates are filed. The corporation
   14  may not pursue an administrative challenge or judicial review of
   15  the final order of the office.
   16         2. In addition to the rates otherwise determined pursuant
   17  to this paragraph, the corporation shall impose and collect an
   18  amount equal to the premium tax provided for in s. 624.509 to
   19  augment the financial resources of the corporation.
   20         3. After the public hurricane loss-projection model under
   21  s. 627.06281 has been found to be accurate and reliable by the
   22  Florida Commission on Hurricane Loss Projection Methodology, the
   23  that model shall serve as the minimum benchmark for determining
   24  the windstorm portion of the corporation’s rates. This
   25  subparagraph does not require or allow the corporation to adopt
   26  rates lower than the rates otherwise required or allowed by this
   27  paragraph.
   28         4. The rate filings for the corporation which were approved
   29  by the office and which took effect January 1, 2007, are
   30  rescinded, except for those rates that were lowered. As soon as
   31  possible, the corporation shall begin using the lower rates that
   32  were in effect on December 31, 2006, and shall provide refunds
   33  to policyholders who have paid higher rates as a result of that
   34  rate filing. The rates in effect on December 31, 2006, shall
   35  remain in effect for the 2007 and 2008 calendar years except for
   36  any rate change that results in a lower rate. The next rate
   37  change that may increase rates shall take effect pursuant to a
   38  new rate filing recommended by the corporation and established
   39  by the office, subject to the requirements of this paragraph.
   40         5. Beginning on July 15, 2009, and annually each year
   41  thereafter, the corporation must make a recommended actuarially
   42  sound rate filing for each personal and commercial line of
   43  business it writes, to be effective no earlier than January 1,
   44  2010.
   45         6. Beginning on or after January 1, 2010, and
   46  notwithstanding the board’s recommended rates and the office’s
   47  final order regarding the corporation’s filed rates under
   48  subparagraph 1., the corporation shall annually implement a rate
   49  increase each year which, except for sinkhole coverage, does not
   50  exceed 10 percent for any single policy issued by the
   51  corporation, excluding coverage changes and surcharges.
   52         7. The corporation may also implement an increase to
   53  reflect the effect on the corporation of the cash buildup factor
   54  pursuant to s. 215.555(5)(b).
   55         8. The corporation’s implementation of rates as prescribed
   56  in subparagraph 6. shall cease for any line of business written
   57  by the corporation upon the corporation’s implementation of
   58  actuarially sound rates. Thereafter, the corporation shall
   59  annually make a recommended actuarially sound rate filing for
   60  each commercial and personal line of business the corporation
   61  writes.
   63  ====== D I R E C T O R Y  C L A U S E  A M E N D M E N T ======
   64         And the directory clause is amended as follows:
   65         Delete line 1362
   66  and insert:
   67         Section 15. Paragraphs (b), (c), (d), (n), (v), and (y) of
   69  ================= T I T L E  A M E N D M E N T ================
   70         And the title is amended as follows:
   71         Delete line 120
   72  and insert:
   73         certain measures; exempting sinkhole coverage from the
   74         corporation’s annual rate increase requirements;
   75         deleting a requirement that the